Mapletree Logistics Trust (MLT) has a diversified logistics portfolio spread across key markets in Asia such as Singapore, Hong Kong, Japan, Australia, Vietnam and China. Management has strong execution capabilities and its portfolio capital recycling strategy has also resulted in net divestment gains being distributed to unitholders.

Although MLT will not be immune to a weaker macroeconomic backdrop, we expect it to remain relatively more resilient vis-à-vis its peers, and also see MLT as a key beneficiary of the structural shift towards more robust e-ecommerce growth trends ahead.

However, given the rotation play to value and laggards, MLT’s share price has recently underperformed and we view this as a buying opportunity for investors with a medium to longer-term horizon. BUY.

Source: OCBC Research - 26 Jan 2021